Solicitors Regulation Authority (SRA) issues update on PM Law and Compensation Fund
The SRA confirmed suspected fraud, involving the improper removal and misuse of £39.5 million of client funds.
Our chief executive, Ian Jeffery, said: “The latest update by the SRA reaffirms the serious situation facing clients.
“The SRA has moved quickly in its investigation and has already paid out 92 claims to former clients. We continue to be encouraged that the SRA has acted with openness and transparency.
“However, a case this large coming so soon after Axiom Ince and SSB Group reinforces the need for the SRA to focus on its core regulatory role and deliver the changes needed to reduce the risk of future large-scale collapses and re-build consumer confidence.
“The Compensation Fund provides crucial protection and reassurance to consumers. It is unfortunate the SRA has had to use the fund in this case and we hope any increase to the fund will be kept to a minimum.
“We are continuing to monitor developments, especially on the likely financial impact on the Compensation Fund, and are in regular contact with the SRA.”
Read the SRA’s update on its investigation into PM Law.
About the Compensation Fund
The Compensation Fund is a discretionary fund operated by the SRA.
Solicitors contribute to the fund through a levy added to the practising certificate fee.
The fund provides compensation to people who are owed money by a regulated law firm. It helps:
- provide a safety net for risks that professional indemnity insurance (PII) is unable to cover
- people who have suffered loss due to a solicitor’s personal dishonesty
- people who have experienced hardship due to a solicitor's failure to account for money they’ve received
- reinforce the public’s trust in the legal profession
Find out more about the Compensation Fund.